What is AWP?
Average wholesale price or AWP is the artificial price that is set for a legend drug. It is artificial because it is inflated from the actual price the manufacturer sets for the drug. AWP is published by a few third parties (including Medispan, First Data Bank and Redbook) whose methodologies have come under legal scrutiny in the recent years. Published AWP is used to calculate discounts to third party payers including plan sponsors.
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